RETAIL NEWS – May 2007

Retail contract threatened at new Bangkok airport, The Fall out from last year’s political coup in Thailand has placed the retail contract at Bangkok Suvarnabhumi Airport under threat…Thresher supports local brewers, The Society of Independent Brewers (SIBA) and Thresher have announced the launch of an exciting new distribution system…

Retail contract threatened at new Bangkok airport
The Fall out from last year’s political coup in Thailand has placed the retail contract at Bangkok Suvarnabhumi Airport under threat. King Power International Group has been the sole travel retailer since the 45 million capacity airport opened for business last September. However, in the aftermath of the military coup that ousted Prime Minister Thaksin Shinawatra, the new government is reviewing a number of state contracts, including the King Power deal which was awarded by aviation authority Airports of Thailand (AoT).

King Power was the incumbent retailer at the old Bangkok airport prior to the high profile opening of Suvarnabhumi last year, and took an active role in the planning process for the new facility. The new political order has ordered an investigation into all agreements worth more than THB1 billion (£15 million). The highly influential Bangkok Post has reported that AoT wants “at least two or three operators” to run duty free stores at the airport, while other media commentators have predicted that the “negotiations” about the contract may put a stop to King Power’s “monopoly”.

King Power deputy managing director Susan Whelan says, “We cannot respond as we have heard nothing from them. Until we see what AoT have to say we cannot do anything”. Losing the contract would represent a major blow to the company, and could open the door to regional travel retail power house DFS Group.

Thresher supports local brewers
The Society of Independent Brewers (SIBA) and Thresher have announced the launch of an exciting new distribution system that will enable the retailer to stock an extensive selection of locally sourced beers. The deal will allow all parties to tap into the emerging trend for local goods that is growing fast in the food retail sector, but only gradually permeating drinks.

The new concept is being brokered through SIBA’s Direct Delivery System. From last month each Threshers store will stock at least four beers that were produced within 40 miles. Over 260 small brewers have signed up to the system, and will service over 1,800 Threshers outlets.

Thresher Group chief executive Roger Whiteside (pictured, left) commented: “There is a huge demand for local products. Offering quality ales from local brewers, such as Highgate Brewery, with a passion and enthusiasm for beer is a far more interesting proposition than the supermarkets’ use of price-led lager deals.”

John Hartley, national account manager for Highgate Brewery (pictured, right), explains: “We believe this is a first within a major multiple retailer. Not only does Thresher have a point of difference from most other high street retailers, but it’s entirely possible that you won’t find the same beer offering in any two Thresher stores.”

Waitrose focuses on drink with new magazine
Waitrose  has produced a new 24-page magazine dedicated to drinks, which will be distributed free to shoppers. The monthly publication, Thirst, will inform customers about new products and the latest market trends, as well as interviews with well-known trade personalities and profiles about specific producers, countries and regions of origin.

The first issue, which was rolled out in Waitrose stores on April 7, was focused on French wine to coincide with the retailer’s French Wine Showcase last month. Each subsequent issue will also have a theme – where possible tying in to in-store activities.

“Thirst will be inspiring, entertaining and informative, but most important of all, down to earth,” says buyer Justin Howard-Sneyd MW. “It is a new way for us to engage with our customers and get them excited by the fantastic range of wines, beers and spirits that we have sourced for them.”

UK consumers are most ethically aware
UK retailers have been working hard to demonstrate their environmental credentials in recent months. And the wisdom of this strategy has been proven with the publication of two surveys that indicate that UK consumers are among the most environmentally aware in the world.

A major study by Green Matters has shown that 88% of UK consumers are “actively concerned” about the environment. And a Gfk NOP study of five Western European countries has shown that the UK leads the way on environmental concern, with 31% of the population prepared to pay a 5-10% premium for ethical products.

© db May 2007